The Asian Infrastructure Investment Bank (AIIB), the body set up and supported by China as part of its ambitious Belt and Road Initiative, may issue its first US dollar bonds by the end of June, according to a Chinese state media report published Sunday.
A statement from the bank’s treasurer Soren Elbech included in the article suggested that the earliest issuance could happen “toward the end of the first half of 2018.” This would allow time for certain procedures, including the board of governors’ approval of AIIB’s 2017 financial statements as well as borrowing and swap documentation, the Xinhua report continued.
Elbech said the bond would have a minimum size of $1 billion but that “we anticipate having to issue a larger size” after that because the bank expects there to be strong demand for the first bond issue. The treasurer added that the bond’s maturity would be between three and five years depending on investor demand, according to Reuters. The bank plans to cap its total borrowing at $3 billion in 2018.